Employee or Independent Medical Sales Reps?

For many individuals, self-employment as an independent sales rep, independent contractor or independent consultant can be a rewarding and an extremely satisfying career option. It can be critically important to keep up to date relative to regulations but it also beneficial to understand and identify the extent of your role. There is a significant difference when it comes to IRS tax regulations.

Common Law Rules for Independent Contractors and Independent Medical Sales Reps

Facts that provide evidence of the degree of control and independence fall into three categories:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Resources:

IRS: Independent Contractor (Self-Employed) or Employee?

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